European Diamonds Plc (EPD: AIM) is a diamond exploration and development company with advanced projects in Finland and Lesotho.

In Finland, the company has explored a large part of the prospective Karelian Craton and identifed a number of kimberlite indicator trains. Kimberlites have been discovered in one of these areas and exploration continues in the others. Evaluation work on the promising Lahtojoki Pipe has begun with a 5,000 tonne bulk sample due to be collected before Easter 2005.

In Lesotho, European Diamonds holds a 25 year mining license to develop the Liqhobong diamondiferous kimberlites. The Liqhobong Project provides for the commencement of mining at 290,000 carats per annum from the end of 2004 from the Satellite Pipe and the evaluation of the adjacent large Main Pipe and start of a Feasibility Study in 2005.

European Diamonds will become a mid-tier diamond producer in 2005 and intends to grow through acquisition and in-house exploration. The experienced management and technical team of European Diamonds have a strong track record of discovery and a history of wealth creation for shareholders.



The Kingdom of Lesotho gained its independence from the UK in 1966 and is the only constitutional monarchy on the African continent. The country is a small, densely populated mountainous country situated in the east of the Republic of South Africa, which entirely encircles the country.

Diamonds in Lesotho
The country has long been known as a source of large, high quality diamonds, mostly from alluvial deposits. To date most of the country's diamond production has been derived from the Letseng-la-Terai deposit which was mined by De Beers between 1977-1981. Letseng has recently returned into production and is again producing high quality gems albeit on a modest scale. Apart from Letseng, the only other known significantly mineralised kimberlites in the country are the Liqhobong suite and the nearby lower grade Kao pipe all located about 40 kilometres west of Letseng also high in the Maluti mountains.





Finland project.

Project Highlights
Work undertaken by European Diamonds and the Geological Survey of Finland has proven that the Achaean-aged Karelian Craton is highly prospective for hard-rock diamond deposits.
European Diamonds currently have seven regional exploration projects in eastern and central Finland in addition to the Lathojoki project currently under evaluation.
The Company has recovered high quality kimberlite indicator minerals from all of the exploration projects and will continue with the field exploration of these areas in 2005.
Work on the Lentiira Project in central eastern Finland has identified a large kimberlite complex covering an area of some 160 square kilometres. Although the Company has recovered high quality indicator minerals and diamonds from the project area, to date only linear kimberlite dykes have been discovered.
None of the sampled dykes has proved to be the source of the highest quality indicators emanating from the highly prospective 'Railway' indicator train. Further assessment of this project will continue throughout 2005.





Corporate website : http://www.europeandiamondsplc.com/s/Home.asp

Shareholder info : http://www.europeandiamondsplc.com/s/InformationRequest.asp

OK Andy, thanks...

Lets hope it turns sentiment a bit

Finland test results and the next sale within 4-6 weeks, I wonder if we can avoid too much drifting in the meantime....

RNS - nothing new really, I guess this is the start of the run up to the TSX listing and placing.


European Diamonds PLC
19 June 2006



European Diamonds plc ('the Company' or 'European Diamonds Plc')
Strategic Mine Development and Exploration Plans


European Diamonds is pleased to announce further plans to develop its key assets
in Lesotho and Finland. The company is entering a significant growth stage of
its development; not only is full production from the Satellite Pipe expected by
the autumn of 2006 but bulk sampling at the much larger Main Pipe has started
already, leading to a feasibility study in 2007.


Lesotho

The Company is successfully producing from the Satellite Pipe in Lesotho and, at
the full scale feasibility study production level of 290,000 carats per year,
will be one of the largest independent diamond producers in the world.
Development of the Satellite Pipe has however always been regarded as the first
strategic step in the commercial development of its diamondiferous kimberlites
in Lesotho. In this regard the adjacent Main Pipe is a major target for the
Company. Plans are advanced, subject to evaluation work, to significantly expand
diamond production by testing and developing the Main Pipe, which at 9+ hectares
in size and containing over 20 million tonnes of kimberlite could become an
additional long term feedstock for the Liqhobong mining operation with the
potential to establish the Company as a long term diamond producer. A production
rate of over 700,000 carats per annum from the Main Pipe has been projected from
internal company scoping studies.

The timing and scale of the development of the Main Pipe will depend upon the
results of a bulk sampling programme presently underway and to concluded by the
end of 2006. Geological understanding of this large multi-phase kimberlite pipe
has been considerably improved over the last 18 months with at least 4 discrete
zones of kimberlite having been identified. Each of these zones appears to have
its own unique diamond content. The micro diamond analysis undertaken thus far
indicate that the 2.4 hectare southernmost K5 zone may have a grade similar to
that of the Satellite Pipe.

The bulk sampling programme is intended to recover up to 15,000 tonnes of
surface kimberlite from the K5 zone, close to the present mill site. Once this
sampling is completed, the kimberlite will be processed on site over a period of
approximately 2 months. The bulk sampling will then be extended to the other
zones with samples of approximately 5,000 tonnes being recovered from each of
the remaining zones. This programme is designed to recover up to 10,000 carats
for valuation purposes. Encouraging early sampling results from metallurgical
tests of this bulk sample material has recently produced a 27 carat diamond, the
largest to be recovered from the licence area by the Company to date.

The commercial decision whether to mine the Main Pipe will be taken based upon
the results of a Feasibility Study which will begin early in 2007. This study
will also determine whether to accelerate the mining of the Satellite Pipe and
stockpile the kimberlite for processing through the present recovery plant. In
this scenario it may be possible to use the resultant pit to dispose of up to
1.5 million cubic meters of tailings from the Main Pipe. This particular process
would have the advantage of avoiding the large early construction costs of a new
tailings dam.

Should the Company decide to mine the K5 zone only, a additional option may be
to target production in excess of 500,000 carats per year for over 6 years
which, when added to that from the Satellite Pipe, could mean total production
of over 700,000 carats per annum, cementing the Company's position as one of the
leading independent hard rock diamond producers in the world.

If the Feasibility Study shows that it is commercially viable to mine all of the
Main Pipe, this option would represent a significant increase in the annual
mining rate of up to 2 million tonnes per year over an initial mine life of 13
years. The increased processing plant capacity to handle this level of
production (up to 250 tonnes/hour) is likely to cost in the order of 25 million
although this has yet to be assessed in detail. A further alternative would be
to mine the K5 zone first, using existing upgraded facilities and then mine the
rest of the Main Pipe.

The value of the Main Pipe stones were estimated in 1998 to be U$62 pct on the
basis of a 1,700 carat parcel recovered by the former owners of the project.
World rough diamond prices have strengthened considerably since 1998 and the
Company is optimistic that the value of stones from the K5 zone will be higher
than those achieved in 1998.

The mine at Liqhobong is situated at an altitude of over 2,500 metres in the
Maluti Mountains and diesel fuel to power the electric generators is brought in
by truck, a laborious, weather-dependent and expensive process. Linking in to
Lesotho's electrical grid system is a key requirement to facilitate production
at the much higher levels envisaged from the Main Pipe. Accessing grid power is
presently under discussion with various organisations.

Grid power could potentially also considerably reduce the operating costs of any
mining operation in particular with respect to diesel costs, which have risen by
over 50% over the past year. The upside potential in terms of short and medium
term production, establishing significantly increased diamond resources and
potential returns to shareholders could be significant.


Finland

The Company is currently focussing on its exploration and evaluation assets in
central Finland at Lahtojoki and Area 3. The Finnish part of the Karelian
Craton, one of the largest and least explored diamond-prospective Archaean
cratons in the world, remains the Company's most important exploration area. The
Company has been exploring the craton for 8 years and has discovered many
kimberlites in the region, including at least 6 discrete areas from which either
new kimberlites have been found or where kimberlite indicator mineral trains
have been recovered.

In the south of the craton, a bulk sample of approximately 2,500 tonnes has been
collected from the diamondiferous Lahtojoki kimberlite pipe. The first 500
tonnes of this sample has been processed at the Geological Survey of Finland's
Outokumpu diamond facility with results of this part of the bulk sample having
recently been announced. The presence of commercial sized diamonds up to 0.45
carats have been confirmed with a grade substantially higher than that achieved
by previous explorers.

The Company plans to process the remaining 2,000 tonnes during the second half
of 2006. Preparation of a concentrate of approximately 20 tonnes will also take
place at Outokumpu, with final observation to be carried out at the Geological
Surveys offices in Helsinki.

Area 3 is the most important of the Company's regional exploration targets to
have been identified so far in Finland. The clusters of indicator trains (and
now kimberlites) that these discoveries represent are known to extend for over
150 kilometres from Area 3, overlapping recent kimberlite discoveries in the
Kuusamo area.

A small bulk sample of approximately 9 tonnes has been collected from the Area 3
kimberlite and has been processed at Outokumpu. The sample was observed at the
Geological Survey in Helsinki, with results recently announced. Macro diamonds
up to 0.09 carats have been recovered from this small sample.

Further work to discover the source of other indicator trains in the vicinity of
the Area 3 kimberlite and to determine the size of the new body will be
required. This work will be supplemented by an additional 300 metres of core
drilling and the collection and processing of 100 till samples.

In addition, the Company has discovered several hitherto unrecognised kimberlite
indicator trains in the vicinity of Lahtojoki and will assess these over the
next year.

Roy Spencer, the Company's CEO has noted 'It is obvious now that the company has
successfully emerged as a major producer of hard rock diamonds. By the time the
present plant upgrades are in place, EPD will be one of the largest independent
diamond producers in the world. Should the bulk sampling work that has already
started on the Main Pipe at Liqhobong prove as successful as we anticipate, the
group could be producing well over half a million carats per year by the end of
the decade. The exploration potential that the Company has identified both in
Lesotho and in Finland is exciting and promises to add significantly to the
group's diamond inventory.'

In recognition of this development, the Company has introduced significant
changes to its management structure both by opening an Operational Office in St
Albans in the UK and by adding to its already strong technical and management
team by the introduction of Mr Chris Sangster as General Manager to, along with
the Liqhobong Production team, initially take the Satellite Pipe to full
production and then to become involved in the day to day running of the Company.
This change will allow Andrew Birnie, the Company's Chief Geologist, with his
geological team, to concentrate on the bulk sampling and pre Feasibility work on
the Main Pipe at Liqhobong and to bring this kimberlite into production as soon
as possible. It will also free members of the team to continue with the highly
successful exploration the Company has been carrying out in Finland and to
conclude the evaluation of the Lahtojoki and Area 3 kimberlites'.


European Diamonds PLC is listed on the Alternative Investment Market (AIM) of
the London Stock Exchange and its shares trade under the symbol EPD.


Mr Roy Spencer, GSSA Member, FAusIMM, and Chief Executive Officer of European
Diamonds plc is a 'qualified person' as defined under the AIM rules and a
competent person under the JORC reporting standards. This announcement has been
prepared under Mr. Spencer's supervision.



For further information please contact:

Roy Spencer, CEO + 44 (0) 1727 852 417
James Cable, FD / Company Secretary + 44 (0) 20 7529 7502
Kerry Spencer, IR + 44 (0) 1727 852 417
+ 44 (0) 7739 827 231


Sarah Samworth, First City PR + 44 (0) 20 7436 7490



European Diamonds PLC

e-mail:
enquiries@europeandiamondsplc.com

website:
www.europeandiamondsplc.com

Andy,I bought@ 39p!! many months ago,is your post a possible recovery or am I DREAMING.

.

Nice thread

chesneywilliam,

At the moment I have a bearish view on EPD, but if they can actually commence bulk production, that could change to a bullish view very quickly, so I can't answer your question, only you can make that choice.

I think they need to deliver in a big way, and they have failed to deliver on promises made for some time now.

I sold after speaking to Kerry Spencer last year because what she told me was contrary to the facts being presented by the company, which made me feel uncomfortable, and in my experience, that feeling is the time to sell.

I may buy again, but not before they start to deliver, and they seem some way off that currently, as we have only had one small diamond sale this year, and that 9k small sale parcel included some held over from October 2005!

They are running well behind their target of 290,000 PA, and the RNS above puts back yet AGAIN the commencement of 290k PA!

Not impressed I'm afraid.

In addition, they are looking to list and probably raise money on the Canadian Vancouver Stock Exchange, which if they list at around this price, will cause some unwelcome dilution for existing shareholders.

Andy .... sounds like a stock well worth avoiding!

cynic,

Well I wouldn't buy EPD at the moment, that's for sure.

Today's RNS seems more of an attempt to support the price than report anything newsworthy IMO.

visit my thread

I believe EPD are touring Europe this week with Minesite, yet didn't present at the London Minesite forum today.

I wonder why?

Shame they arn't just selling diamonds as promised.
Should have known better than to come back here although I've made money here in the past!!!!!

Looks like they have sold some diamonds !
LONDON (AFX) - European Diamonds PLC said it discovered two large diamonds at the Liqhobong kimberlite mine in Lesotho.

The gems weighed 29.2 carats and 24.3 carats. They were found less than a month after it discovered a 27.7-carat stone in the same site.

Separately, the miner said it sold 16,500 carats of the Liqhobong diamonds for 691,000 usd in Antwerp recently.

'In view of the present volatile rough diamond market, we view this sale as very positive. Market reception for our better quality yellow diamonds has been strong and the Liqhobong yellows are rapidly becoming sought-after in the European market,' said chief executive Roy Spencer.

monicca.egoy@afxnews.com

mbe/joy

Some great news today for EPD! 30p here we come!

Dynamite,

Only 16,500 carats sold in three months?

That's 30k this year so far then?

And the last parcel contained some stones carried over form the previous October!

A bit short of the 290k PA EPD production schedule, which keeps being put back!

This is (IMO) a really poor performance, and a lower average selling price than the previous tranche too!

Interesting that this is announced today, when they are touring Europe, so much for timely release of price sensitive information!

Nice larger stones too, but news released on the same day?

me a cynic?

Another positive article out on EPD.For those that are not familiar with the site it is free to register and read.

http://www.proactiveinvestors.co.uk

European Diamonds Plc: Turning point for European Diamonds?
By Penny Sterling.

European Diamonds has been having a torrid time of it lately.

Currently working up to full production on the Satellite Pipe on its Lesotho Liqhobong property, and having commenced bulk sampling at the nearby larger Main Pipe, the company also has kimberlite assets in Finland at a relatively early stage of exploration, where bulk sampling is currently underway.

Another horror show.....5 pence must surely be the next stop.

laila25,

Yes the chart looks bad, but 5p?

iIthink they wll be taken out before they get that low.

Horror show.

Laila25,

I totally agree, management have failed to meet expectations, and I sold @ 38p ages ago!

If they commence mining at the required rate, I may buy back, but I'm not holding my breath!